Stepan Company (SCL)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,180,270 | 2,325,770 | 2,773,270 | 2,345,970 | 1,869,750 |
| Total current assets | US$ in thousands | 810,429 | 851,883 | 1,044,800 | 913,368 | 905,651 |
| Total current liabilities | US$ in thousands | 669,034 | 607,870 | 670,649 | 500,476 | 416,554 |
| Working capital turnover | 15.42 | 9.53 | 7.41 | 5.68 | 3.82 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,180,270K ÷ ($810,429K – $669,034K)
= 15.42
Based on the data provided, Stepan Company's working capital turnover has shown a positive trend over the years. The working capital turnover ratio has increased from 3.82 in December 31, 2020, to 15.42 in December 31, 2024.
This upward trend indicates that the company is managing its working capital more efficiently, generating more revenue from each unit of working capital employed. A higher working capital turnover ratio suggests that Stepan Company is able to efficiently utilize its current assets and liabilities to support its operations and sales growth.
The significant increase in the working capital turnover ratio over the years reflects an improvement in Stepan Company's liquidity management and operational efficiency. It indicates that the company is able to quickly convert its working capital into sales, which is a positive sign for its financial health and profitability.
Peer comparison
Dec 31, 2024